Build Wealth For Your Kids Using The New Trump Accounts with $1,000 Jumpstart

How early should you start building wealth? After graduating from college? When you start working? When you’re at your peak earning potential? Well, what if we told you that you can begin as early as when you’re born?

It’s never too early to start building wealth, and thanks to the new Trump Accounts, parents can start building wealth for their children the moment they are born! It’s a step in the right direction toward establishing generational wealth for your family, and we’ll show you how.

Let’s explore how Trump Accounts (see video) can set your kids on the right path to wealth building before they can even say “money!” A great way for $1,000 to jumpstart a new life towards financial success.

What are Trump Accounts?

In July 2025, the One Big Beautiful Bill Act passed. It established the Trump Accounts, designed to give children born in the US a head start on building their finances.

Trump Accounts are long-term savings accounts for kids jumpstarted with an initial $1,000 deposit from the US government and supplemented with private contributions. This one-time $1,000 deposit is free money—but it comes with a few strings attached to make it lucrative for your kids.

·       The money can’t be accessed until your child reaches age 18

·       The money must be invested in a broad US stock market index fund

·       The money must be used for qualified expenses (education, home purchase, or starting a business). Non-qualified use may incur additional tax and fee penalties.

The goal is to provide a financial foundation for the next generation, so that when they become adults, they already have a nest egg to propel them to even greater financial heights. Long-term investments benefit from compounded interest, which can grow significantly by the time they reach age 18—and even more if they remain untouched until retirement.

Who Qualifies for Trump Accounts?

Setting your children up with a Trump Account to receive the $1,000 jumpstart from the government isn’t automatic. It’s an opt-in account and your kids must meet specific requirements to qualify.

Eligibility: Trump accounts are only available to children born between January 1, 2025, and December 31, 2028. They must be born in the US and have a Social Security number. For a child who meets these requirements, parents must opt-in to the account by filing IRS Form 4547 with their tax return.

Building Wealth With Your Trump Account Using Government and Private Contributions

Trump Accounts were established for parents to start wealth-building on behalf of their children. A separate account can be established for each child, provided they meet the eligibility requirements.

The account gets a one-time $1,000 deposit from the government after it’s open. The good news is that it doesn’t remain just $1,000 by the time your child reaches age 18. Whether you make additional contributions or not, the account will be significantly higher than when you first established it for them. Here’s why.

The initial $1,000 is invested in a broad index fund tracking the US stock market. It’s a low-risk investment with a positive return trend. To minimize the investment risk, the account restricts:

·       Investments in individual stocks

·       Funds can’t be held in cash

·       Parents can’t withdraw funds from the account for any reason (even to make alternative investments)

Assuming a conservative 8% growth rate, $1,000 will grow to more than $4,000 over 18 years. If it remains untouched for 50 years, it will be more than $50,000! For even more growth, consider making private contributions to the account.

Trump Accounts permit private contributions from anyone—parents, relatives, and even your child once they begin working and earning money. The rules for private contributions are as follows:

·       Family can contribute up to $5,000 per year

·       Employer contributions up to $2,500 per year

Shortly after the Trump Accounts were announced, the Dell Family donated approximately $6.5 billion, which adds a $250 private contribution per account. To qualify for these additional contributions, kids must:

·       Be under the age of 10

·       Eligibility based on specified zip codes with an income under $150,000

We recommend considering alternative investments before making contributions to the Trump Account. Consult with a financial advisor at Paycheck to Wealth to see other investments with better returns and fewer restrictions that can grow your investments even more by the time your child reaches age 18 (excluding the $1,000 deposit).

Get Started With Your Trump Account and Claim Your $1,000 Investment

Trump Accounts are currently available for parents with children who meet the eligibility requirements. If you need help understanding more about the accounts and how to take advantage of their wealth-building potential, we’re here to help! Contact a financial advisor at Paycheck to Wealth to start building wealth for your child’s future starting today!